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Choosing an Affordable Life Insurance for People Over 65



Choosing an Affordable Life Insurance for People Over 65

Life insurance is an important component for your financial plan. If you are applying for a cover, it is always important to tell the truth. If you fail to disclose all the relevant facts and then consider making a claim, the life insurance company is likely to undertake investigations, deny the claims and cancel the policy. The factors to consider when choosing insurance for people over 65 include:

Need for the policy
You will need to determine whether you need an affordable life insurance for people over 65. You get to purchase the cover if you want to protect the people you are likely to leave behind. If you have people who depend on you financially such as a spouse or children, it is very important to consider taking up an insurance policy.

Type of insurance
Once you have made the decision to apply for insurance, it is important to determine the type of policy that suits your needs. The two main types of covers are the whole life and the term life covers. The term life insurance covers a stipulated period ranging from 5 to 30 years; you can also apply for an annual life insurance cover. Once the term expires, the policyholder will be in a position to access the benefits. If the policyholder dies before the term has expired, the named beneficiaries will be able to receive the benefits. On the other hand, the whole life policy combines the term policies as well as an investment product that helps to build up cash value.

 Policy that meets your needs
It is important to choose a policy that meets your needs. You may need to choose a policy that will be in a position to last for the time you have dependents. Therefore, to make the right decision, you may need to consult with your advisers who are in a better position to advise the way forward.

Policy that you can afford
It is important to choose a policy that you can afford. However, as you take in account the affordability it is important to avoid choosing a policy that leaves you under insured. Considering that whole life cover is normally more expensive when compared to the term life cover, many of the insurance shoppers often purchase whole life policy that is too little.

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